Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Mortgage decisions in Swedish housing co-operatives
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management, Building and Real Estate Economics.
2017 (English)In: International Journal of Housing Markets and Analysis, ISSN 1753-8270, E-ISSN 1753-8289, Vol. 10, no 4, p. 572-584Article in journal (Refereed) Published
Abstract [en]

Purpose - This paper aims to highlight co-ops mortgage choice strategy and factors that influence the board's mastermortgage decisions in Swedish co-op associations. Design/methodology/approach - Data are collected through a pre-study interviewing chair persons in co-ops in Stockholm followed up by a more extensive questionnaire. Answers from these are tested by logistic regression and compared to hypotheses based on earlier findings on mortgage choice on a household level and additional findings from the interviews. Findings - The mortgage choice in co-ops seems to be more dependent on financial similarities than physical location. Loan-to-value (LTV) ratios have a dominant influence in that co-ops with high LTV ratios have a lower preference for adjustable-rate mortgages (ARMs). When checking for location, the media and individual chair persons also seem to affect the choice. Overall, there seems to be awareness in co-ops boards about the potential financial effects of their mortgage choice. Practical implications - The negative connection between high LTV ratios and ARMs implies that boards try to make their mortgage expenditure more predictable. This reduces liquidity risks which may be of importance for financially constrained owners. Findings indicate that co-ops are risk averse and that the short-term threat for increasing interest costs is low. This is of value to both homebuyers and the financial industry. Originality/value - This paper examines factors influencing mortgage choices in an organizational context such as co-op associations. The master mortgage in a co-op can have major influence on members financial situation but, to the author's knowledge, a similar study has never been done before, neither in an international nor a Swedish context.

Place, publisher, year, edition, pages
EMERALD GROUP PUBLISHING LTD , 2017. Vol. 10, no 4, p. 572-584
Keywords [en]
Sweden, Co-op, Master mortgage, Mortgage choice
National Category
Economics
Identifiers
URN: urn:nbn:se:kth:diva-214909DOI: 10.1108/IJHMA-01-2013-0002ISI: 000409339900008Scopus ID: 2-s2.0-85028801717OAI: oai:DiVA.org:kth-214909DiVA, id: diva2:1150998
Note

QC 20171020

Available from: 2017-10-20 Created: 2017-10-20 Last updated: 2017-10-20Bibliographically approved

Open Access in DiVA

No full text in DiVA

Other links

Publisher's full textScopus

Authority records BETA

Hullgren, Maria

Search in DiVA

By author/editor
Hullgren, Maria
By organisation
Building and Real Estate Economics
In the same journal
International Journal of Housing Markets and Analysis
Economics

Search outside of DiVA

GoogleGoogle Scholar

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 36 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf